Investors who plan on the fly or try to get rich quick overnight from real estate deals often do not succeed. Other common mistakes include trying to succeed alone, being too conservative, paying too much, and not doing the homework.
If you are a real estate professional interested in online investing – or any other kind of real estate investing, for that matter – avoid these common mistakes at all costs:
1. Planning on the fly. Don’t buy a home and then try to figure out how to make money from it. Instead, develop a solid plan, find an investment model, and then find a property that will fit your plan. Develop a short-term and long-term plan for your business. Your plan can stay flexible – and should – but make sure that you are not just making things up as you go along.
2. Falling for the idea of overnight success. Sure, you might put together the perfect first deal and start making money hand over fist. The reality is that most investors are in real estate for long term earnings. They start gradually building an income because the higher the potential profits the higher the risk and most new investors cannot handle the biggest risks right off the bat.
3. Falling in love with the idea of the independent real estate investor. Many new investors fall in love with the idea of online investing or real estate investing because they imagine they will “fire their boss” and go it alone. While it’s true that investors enjoy more freedom, real estate investing is not a solitary activity. You need to work with people and develop a power team to succeed. It’s hard to succeed if you want to be a hermit.
4. Failing to do the legwork. You need to get an education before you start investing. This education can mean classes, books, or seminars. Whatever you choose, just make sure that you understand what you are doing before you start risking real money. Make fake real estate deals with Monopoly money if it comes to that, but make sure that you understand what you are doing before you move into the real world of investing.
5. Overpaying. If you pay too much for a property, your drive your potential profits through the floor. You make a lot of your profits at the moment you purchase, so buy carefully.
6. Being too conservative. It will be hard to build a business in real estate online investing if you are only putting together one deal at a time. You need to find ways to create multiple streams of income in your business so that even when one property is bleeding money, you are still making a nice amount.
To Massive Profits,
Brad Wozny
